10-09-2013 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL OCTOBER 9, 2013 in 2008. Masterpiece Homes subsequently acquired 2945 and 2959 LaBore Road for combination with 2966 Arcade Street and to provide access for the development to LaBore Road. The Administrator reviewed some of the key points outlined in the Development Agreement. He noted that the developer will pay $100,000 per lot. A total of $855,000 will be assessed against the property ($57,000 per lot), and the developer will have $43,000 per lot in equity. Total project costs are just under $2.2 million. The Administrator reported that the developer is agreeing to guarantee a minimum market value per lot of $450,000. He outlined the mechanics of how that guarantee will work, and the penalties that will come into play if that guarantee is not met. The Administrator also noted that lots will be forfeited to the City if homes are not completed by 2016. However, there is a provision for extending that deadline which involve the developer paying the City just over $4,000 per lot for an extension. The Administrator reported that the developer's attorney has agreed in principle with the draft Development Agreement. The City Attorney is in agreement with the Development Agreement. The Administrator recommended approval subject to any minor modifications by the developer's attorney which would then be reviewed and approved by the City Attorney. For the benefit of the public, Blesener asked the Administrator to explain the City's involvement in this project through the use of Tax Increment Financing (TIF). The City Administrator reported that the project would not have proceeded without TIF assistance. He noted that 2966 Arcade Street was acquired in 2008, when the real estate market was in a downturn. He noted the ongoing code enforcement issues with this property, and the challenge to develop this site given there was insufficient road access. The developer purchased two adjacent LaBore Road properties to provide road access. The higher valued homes that are planned for Pinetree Pond complement the adjacent Gervais Woods development. McGraw noted that landscaping that is being put in the Pinetree Ponds development. Of the $96,000 in landscaping, $49,000 is in trees. McGraw introduced the following resolution and moved its adoption: RESOLUTION NO. 2013 -10 -185 — APPROVING THE PINETREE PONDS DEVELOPMENT AGREEMENT AS SUBMITTED BY THE CITY ADMINISTRATOR SUBJECT TO MINOR MODIFICATIONS BY THE DEVELOPER'S ATTORNEY, WITH THOSE 5